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Calculating costs

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cazza101

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Hi

I'm trying to calculate costs to set up a manicure business from home. Dies anyone have any easy ways of doing this?

I'm not sure what else to include other than products such as varnish, gel, lotions. Do I include insurance, electricity etc etc.

Any suggestions welcome
 

attitude

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Hi

I'm trying to calculate costs to set up a manicure business from home. Dies anyone have any easy ways of doing this?

I'm not sure what else to include other than products such as varnish, gel, lotions. Do I include insurance, electricity etc etc.

Any suggestions welcome
Insurance and electricity and heat are ongoing expenses. So is product and supply replenishment. You would include your initial spend on products, supplies and equipment and any refurb costs as well as licensing and permits etc.
 

cazza101

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Thanks for this, what licensing do I have to get? & where from?
 

SiennaKate

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Much more than varnish, gel and lotion!
Obviously your furnishings, desk, chairs, lamp, racks, towels, disposables etc
Sterilising fluids, tools, consultation cards, appointment cards...
The list is endless.
What service are you providing? Did training not cover setting up business?
 

Hhh

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Its amazing how much is actually needed, I'm going to be mobile (not started yet) I would really shop around and compare products to get good quality for a good price. It all adds up very fast ;)
 

squidgernetball

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What costs are you trying to work out? The actual cost of buying everything in so you can set up a business, or the treatment costs - ie what it costs in product etc to actually perform a manicure?

Vic x
 

attitude

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cazza101

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What costs are you trying to work out? The actual cost of buying everything in so you can set up a business, or the treatment costs - ie what it costs in product etc to actually perform a manicure?

Vic x
 

cazza101

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Thanks for your responses

Costs certainly mount up as I'm finding out, I'm not sure how to calculate what it costs me per manicure or pedicure, do I include the costs of electricity, insurance, licences, etc, in addition to the actual product cost.

If so do I say electricity costs x amount per year & split it between how many treatments I anticipate doing in the year.

Also how do I find out how many treatments would I get out of say a bottle of hand scrub, for example.

I've never done anything like this before so its all very confusing .

So help needed
 

squidgernetball

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You'd usually keep your costs separate. So your treatment cost is the cost of the product used in that treatment. I wouldn't add electricity or rent at this stage. You don't have to do this. You can just buy products and sell treatments. You don't have to break it down. Out of interest, why are you?

Vic x
 

Beansy

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If you're just trying to do projections for running the business at home you could calculate costs for utilities by looking at your annual costs (which you'll have) and then taking a percentage for the amount of time (and space) you'll be using for business.

An example of this is if it costs you £1,000 for heat (I'm using easy numbers!) and it's a 5 room house, then it's approximately £200 per year per room. If you will be using one room for business for 50% of the time, it will roughly be £100 per year to heat the room for business purposes. Does that make sense?

If you then want to use this cost to inform your price, you could divide the cost of your heating by your projected number of treatments per year.

So...... if you think you'll do 10 treatments per week, for 45 weeks of the year that's 450 treatments.
£100/450= £0.22

If you want to calculate the cost of one service (in order to be able to set your prices) then you need to use what's called a 'full cost recovery' approach. That means that you need to calculate every cost in to your price, this includes product, time, heat, light, product, uniform, insurance, equipment etc.

Your supplier should be able to provide you with a cost breakdown of a service.

Hope this helps :)
 

cazza101

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If you're just trying to do projections for running the business at home you could calculate costs for utilities by looking at your annual costs (which you'll have) and then taking a percentage for the amount of time (and space) you'll be using for business.

An example of this is if it costs you £1,000 for heat (I'm using easy numbers!) and it's a 5 room house, then it's approximately £200 per year per room. If you will be using one room for business for 50% of the time, it will roughly be £100 per year to heat the room for business purposes. Does that make sense?

If you then want to use this cost to inform your price, you could divide the cost of your heating by your projected number of treatments per year.

So...... if you think you'll do 10 treatments per week, for 45 weeks of the year that's 450 treatments.
£100/450= £0.22

If you want to calculate the cost of one service (in order to be able to set your prices) then you need to use what's called a 'full cost recovery' approach. That means that you need to calculate every cost in to your price, this includes product, time, heat, light, product, uniform, insurance, equipment etc.

Your supplier should be able to provide you with a cost breakdown of a service.

Hope this helps :)
 

cazza101

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Thank you that makes sense.
Now you exp!ained that i thunk it will be easiercto keep the running costs separate to the product cost.

To answer the question why I want to know about this, its just really out of curiosity. I understand how to calculate the product cost, but in addition to that the running cost us also attributable to the overall cost of the business against the profit.

Thanks again x
 

Mrs Geek

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Thank you that makes sense.
Now you exp!ained that i thunk it will be easiercto keep the running costs separate to the product cost.

To answer the question why I want to know about this, its just really out of curiosity. I understand how to calculate the product cost, but in addition to that the running cost us also attributable to the overall cost of the business against the profit.

Thanks again x
No one has mentioned the cost of your TIME....

This is the one thing people fail to remember. I am assuming that you have put time, energy etc into educating yourself on your chosen products and treatments... That needs to be factored in too. Nail Teks may charge XY and Z but time, experience... Master classes etc will allow nail Teks to up their prices and charge more... So factor in your time!!!
 

Beansy

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No one has mentioned the cost of your TIME....

This is the one thing people fail to remember. I am assuming that you have put time, energy etc into educating yourself on your chosen products and treatments... That needs to be factored in too. Nail Teks may charge XY and Z but time, experience... Master classes etc will allow nail Teks to up their prices and charge more... So factor in your time!!!
[emoji137] I did!
 

Mrs Geek

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